Budget Hotel Chapter 3
Chapter 1: Marketing Plan
1.1 Market Analysis
Minister
of Tourism Malaysia, YB Dato' Sri Dr Ng Yen Yen has announced government
funding of RM50 million (EUR12 million, USD16 million) for the business tourism
sector for 2011, as part of the 10th Malaysia Plan.
The
announcement was made at a media conference held in conjunction with the
inaugural Industry Briefing organised by the Malaysia Convention and Exhibition
Bureau (MyCEB) at the Kuala Lumpur Convention Centre recently.
Recognising
the untapped potential in the business tourism segment and given that it
attracts high-yield visitor, the funding will be channelled towards enhancing
Malaysia's competitiveness in the Meetings, Incentives, Conventions and
Exhibitions (MICE) arena.
The
Malaysian government's decision to prioritise focus on the business tourism
sector came after a series of brainstorming sessions conducted with the private
sector on the tourism industry as part of the National Key Economic Area (NKEA)
project led by the Prime Minister's department.
"We
have identified the need to establish Malaysia as a leading business tourism
destination globally," said YB Dato' Sri Dr Ng, "and I am pleased to
note that it has been recognised as one of the NKEA's Entry Point Projects
(EPP)."
"Under
the Economic Transformation Programme's NKEA project, Malaysia targets to grow
business tourism arrivals from 5 percent to 8 percent of the overall tourist
arrivals; which translates to a an increase from 1.2 million to 2.9 million by
year 2020. In addition, the business tourism industry is expected to contribute
RM3.9 billion (EUR0.9 billion, USD1.2 billion) in incremental Gross National
Income (GNI) and 16,700 additional jobs to the nation by year 2020.
"We
remain focused to propel Malaysia to top five in the ICCA, International
Congress and Convention Association country rankings in Asia Pacific by year
2020," added YB Dato' Sri Dr Ng.
In
2009, Malaysia welcomed 1.2 million international business tourism visitors,
generating an estimated RM10 billion (EUR2.4 billion, USD3.2 billion) in visitor
spending to the local economy. Statistics showed that the estimated spending
for each international business tourism visitor is RM7,418 (EUR1,774,
USD2,372); which is three times the spending of an average leisure visitor.
Equally
delighted with the announcement was the Chief Executive Officer of MyCEB, Mr
ZulkefliHj Sharif. "The funding would provide a significant boost to
Malaysia's business tourism industry. Besides supporting the nation's bid for
international meetings in key industry sectors crucial to the economy, it will
also help to stimulate growth in business tourism arrivals and foreign exchange
earnings over the next decade," he said.
Core
strategies of the budget include strengthening the role and resources of MyCEB,
the lead agency established by the Ministry of Tourism to assist meeting and
event planners to secure and stage international business events in Malaysia.
Zulkefli
continued, "As part of the RM50 million funding, RM25 million (EUR6
million, USD8 million) will be allocated for a subvention programme. The
programme focuses on supporting bids for targeted international business events
which offers a high economic value to the nation. Support given will be based
on an economic assessment, the agreed performance criteria as well as mutual
benefits for the government and the local host organisation."
Instrumental
to the development of the national strategy for business tourism under NKEA,
Datuk Peter Brokenshire, General Manager, Kuala Lumpur Convention Centre, said
"The allocation of a subvention fund in 2011 for the business tourism
segment is a very positive step towards the advancement of Malaysia's tourism
industry as the segment targets high yield, quality, and super tourists. This
milestone bodes well for the industry as not only will it make Malaysia more
competitive globally but also facilitate the delivery of more international and
regional associations meetings to the country. Without a doubt, the subvention
fund will help to achieve the government's business tourism objectives," he
said.
The
MyCEB Industry Briefing is a forum for MyCEB to outline and share its
programmes and initiatives for 2011 - 2012 with the local business tourism
industry's stakeholders, including meeting and event planners, exhibition
organisers, industry providers, as well as state tourism officials.
Due to our government is
strongly support the tourism business in Malaysia and plan to increase the
traffic of foreign tourism to Malaysia in 2014. Our hotel is located at the
strategies location which is nearby the tourism place at BatuFerringhi,
Penang. These areas have high
accessibility of foreigner tourism and local tourism which would like to spent
their holiday nearby the beach.
1.2 Target Market
According to data obtain from the Malaysia Business
Tourism Department, Malaysia’s international business tourism visitor have been
increased by an estimated 133% since 2003.
|
|
2003
|
2004
|
2005
|
2006
|
2007
|
2008
|
2009
|
2010
|
2011
|
|
International Business Tourism Visitor
|
550,741
|
675,669
|
773,562
|
820,243
|
1,013,104
|
1,123,373
|
1,253,248
|
1,278,014
|
1,285,145
|
|
Gaining %
|
|
+23%
|
+15%
|
+6%
|
+24%
|
+11%
|
+12%
|
+2%
|
1%
|
The Malaysian government’s priority is for Malaysia to
increase its focus on high-yield travellers with a particular interest in the
business tourism sector and increasing its share of overall visitor arrivals. According
from the data obtain from Malaysia Tourism Department most of the foreign
tourism is from the Asia, thus the theme for the Hotel Container will be
designed to suite with the their culture.
|
Year 2013
|
China
|
South Korea
|
Singapore
|
Japan
|
United Kingdom
|
United State
|
Europe
|
Other
|
|
Visitor
|
316,000.00
|
56,000.00
|
18,202.00
|
37,025.00
|
19,205.00
|
28,252.00
|
26,252.00
|
37,220.00
|
|
Percentage
|
59%
|
10%
|
3%
|
7%
|
4%
|
5%
|
5%
|
7%
|
From the data above, our primary target
customer is from the china, which is 59% from the total foreign visitor of
Malaysia in the year 2013.
1.2.1 Economic Value for Business Tourism
According to the Malaysia Tourism
Department International business tourism visitor expenditure for 2011 is
estimated to be RM10.7 billion. The economic impact value of international
business tourism visitors for 2011 is estimated to be RM17.6 billion, 20% of
the expenditure is for the accommodation, thus the hotel industry will have the
highest earning compare to the other industry in tourism. The average spend per
trip for international business visitors is estimated to be RM7,418. The average length of international
conventions is 3.9 days. The average
length of stay for international business tourism visitors including pre- and
post-touring is 5.85 days and all of the tourism prefer the budget hotel
compare to 5 star hotel due to the cost is more much cheaper. Business tourism visitors spend is estimated
to be at least three times more than an average leisure visitor.
1.3 Market Size
Travel accommodation sales were boosted
by the positive performance of both domestic and inbound tourism in 2013.
Instead of focusing on raising the quantity of outlets or rooms alone, the
industry and tourism boards focused on new classifications budget hotel, which
have quality standards in line with the New Key Economic Areas (NKEAs)’s 12
Entry Point Project. Better quality hotels as well as investment in budget
hotels are one of the key targeted areas of the plan.
Tourism has proven to be resilient area
capable of withstanding a challenging economic environment. Indeed, tourism
appears to be almost recession-proof as tourists continue to travel in order to
relax or to take a break income families which could not afford long distance
holidays still travelled domestically and to nearby countries like
Singapore or to the local tourism place
like Penang, Malacca or PulauRedang.
The active involvement of various trade
players as well as national policies that recognize the importance of and
promote tourism ensured that the travel and tourism area performed well in
2012. The development of tourist attractions such as theme parks and shopping
malls on top existing attractions ensures that Malaysia meets the different
needs of wide range of tourists especially in Penang, which have variety local
food to suit the favour of tourist. In addition, the opening of new hotels and
refurbishment of old ones highlighted the high level of demand for rooms.
Furthermore, the tourism board’s effort to promote shopping, MICE, homestay and
partnering tourism with different trade partners is also helping to fuel
growth.
Penang has one of the most densely
populated areas in Malaysia, attracting both locals and foreign tourist due to
its pleasant lifestyle and variety of food. It is estimate there are more than
200,000 tourist visit to Penang each year, but there have only three 4 star
hotel and two budget hotel at Penang, this indicate that there is a shortage of
supply for the accommodation of tourist.
The Container Hotel currently serving 16
rooms at BatuFerringhi, Penang which provide a comfort and economic
accommodation to the tourist who visit to Penang. However, a large market size
brings a major disadvantage as it also attracts more competitors into the
market.
1.4 Competition
1.4.1 Other Direct Competition
|
|
|
|
1.4.2
Indirect
Competition
Hard Rock
Hotel also remains as alternative choices for the tourist to stay overnight,
which become the primary indirect competitor to us based on great sea view and
luxury environment of the hotel. This hotel has the highest traffic of foreign
visitor especially from the Europe country.
Other than that, Eastern and Oriental Hotel is our second indirect
competition, it is located at 10 Farquhar Street, BatuFerrangi, Penang. This
hotel is located nearby the jetty which has high access of tourism. Besides
that, most of the boat owner will stay at this hotel due to convenience.
1.4.3 Competitor Analysis
Our main competitors for budget
hotel in the Penang including Tune Group Bhd, New Rope Walk Hotel, Hard Rock Hotel, and Eastern And Oriental Hotel. In order to identify the
positions of our competitors in the market and to produce alternatives to stand
above our competitors, both the strengths and weaknesses of our competitors
have been identified as shown below.
|
Competitor
|
Strengths
|
Weaknesses
|
|
Tune Group Berhad
|
Have many outlet in Malaysia and
worldwide, which is the subsidiaries of the Airasia
|
Weak management team due to outlet is
too many
|
|
New Rope Walk Hotel
|
Cheap in price and located at city
|
The building is too old
|
|
Hard Rock Hotel
|
Luxury hotel which have a beautiful
beach
|
Expensive and located at BatuFerringhi which far from town
|
|
Eastern And Oriental Hotel
|
Luxury and have a good geographical
location of jetty
|
Expensive and most of the tourist not
affordable
|
1.5 Market Share
Before the involvement of the Container Hotel:
|
No
|
Competitor
|
Number of Room
|
Percentage
|
|
1
|
Tune
Group Berhad
|
168
|
26%
|
|
2
|
Roomies
Penang Guesthouse
|
8
|
1%
|
|
3
|
Ferringhi Heritage Budget Hotel
|
21
|
3%
|
|
4
|
Hard
Rock Hotel
|
184
|
28%
|
|
5
|
New Rope Walk Hotel
|
36
|
5%
|
|
6
|
Eastern
And Oriental Hotel
|
118
|
18%
|
|
7
|
Golden
Sand Resort
|
112
|
17%
|
|
8
|
Senja
Motel
|
10
|
2%
|
|
|
Total
|
657
|
100%
|
|
|
|
|
|
After the involvement of Container Hotel:
|
No
|
Competitor
|
Number of Room
|
Percentage
|
|
1
|
Tune
Group Berhad
|
168
|
25%
|
|
2
|
Roomies
Penang Guesthouse
|
8
|
1%
|
|
3
|
Ferringhi Heritage Budget Hotel
|
21
|
3%
|
|
4
|
Hard
Rock Hotel
|
184
|
27%
|
|
5
|
New Rope Walk Hotel
|
36
|
5%
|
|
6
|
Eastern
And Oriental Hotel
|
118
|
18%
|
|
7
|
Golden
Sand Resort
|
112
|
17%
|
|
8
|
Senja
Motel
|
10
|
1%
|
|
9
|
Container
Hotel
|
16
|
2%
|
|
|
Total
|
673
|
100%
|
After the company involvement in the
market, the company is projected to be able to take 1% of the market share from
the rest of the competitors. The main competitors for the Container hotel would
be the tune hotel and new rope walk hotel as they are also the same concept
with our hotel which is provide a cheap accommodation to the tourist.
1.6 Sale Forecast
1.6.1 Market Penetration
|
No
|
Competitor
|
Number
of Room
|
Percentage
|
Room
Occupied per annum
|
Market
Penetration %
|
|
1
|
Tune Group Berhad
|
168
|
25%
|
24,528
|
21%
|
|
2
|
Roomies Penang
Guesthouse
|
8
|
1%
|
7,008
|
6%
|
|
3
|
Ferringhi Heritage
Budget Hotel
|
21
|
3%
|
10,074
|
9%
|
|
4
|
Hard Rock Hotel
|
184
|
27%
|
26,864
|
23%
|
|
5
|
New Rope Walk Hotel
|
36
|
5%
|
5,256
|
5%
|
|
6
|
Eastern And Oriental
Hotel
|
118
|
18%
|
17,228
|
15%
|
|
7
|
Golden Sand Resort
|
112
|
17%
|
16,352
|
14%
|
|
8
|
Senja Motel
|
10
|
1%
|
1,460
|
1%
|
|
9
|
Container Hotel
|
16
|
2%
|
7,592
|
7%
|
|
Total
|
673
|
100%
|
116,362
|
100%
|
Our goal is to rent out
at least 80% of the total room available to rent each year. It is estimate
that, the market penetration will be 5% out of the total of the market set for
the competitor.
1.6.2 Revenue of Sales
|
Types
of Room
|
Renting
Fees (RM)
|
Total
Number of Room
|
Revenue
Per Month (RM)
|
|
Outgoing
|
80/bed
|
4 (4 beds in each room)
|
38,400.00
|
|
Adventure
|
120/night
|
6
|
21,600.00
|
|
Conservative
|
200/night
|
6
|
36,000.00
|
|
Total
|
16
|
96,000.00
|
1.6.3 Forecast Monthly Revenue
|
First Year
|
|||
|
Month
|
Rent (%)
|
Total Revenue (RM)
|
Sale Forecast (RM)
|
|
Jan
|
5%
|
96,000.00
|
4,800.00
|
|
Feb
|
10%
|
96,000.00
|
9,600.00
|
|
Mar
|
15%
|
96,000.00
|
14,400.00
|
|
Apr
|
10%
|
96,000.00
|
9,600.00
|
|
May
|
25%
|
96,000.00
|
24,000.00
|
|
Jun
|
20%
|
96,000.00
|
19,200.00
|
|
Jul
|
25%
|
96,000.00
|
24,000.00
|
|
Aug
|
30%
|
96,000.00
|
28,800.00
|
|
Sep
|
50%
|
96,000.00
|
48,000.00
|
|
Oct
|
40%
|
96,000.00
|
38,400.00
|
|
Nov
|
50%
|
96,000.00
|
48,000.00
|
|
Dec
|
50%
|
96,000.00
|
48,000.00
|
|
Average =
|
28%
|
Total
(RM) =
|
316,800.00
|
|
Second Year
|
||||
|
Month
|
Rent (%)
|
Total Revenue (RM)
|
Sale Forecast (RM)
|
|
|
Jan
|
55%
|
96,000.00
|
52,800.00
|
|
|
Feb
|
45%
|
96,000.00
|
43,200.00
|
|
|
Mar
|
85%
|
96,000.00
|
81,600.00
|
|
|
Apr
|
60%
|
96,000.00
|
57,600.00
|
|
|
May
|
85%
|
96,000.00
|
81,600.00
|
|
|
Jun
|
60%
|
96,000.00
|
57,600.00
|
|
|
Jul
|
55%
|
96,000.00
|
52,800.00
|
|
|
Aug
|
50%
|
96,000.00
|
48,000.00
|
|
|
Sep
|
90%
|
96,000.00
|
86,400.00
|
|
|
Oct
|
75%
|
96,000.00
|
72,000.00
|
|
|
Nov
|
90%
|
96,000.00
|
86,400.00
|
|
|
Dec
|
95%
|
96,000.00
|
91,200.00
|
|
|
Average =
|
70%
|
Total (RM) =
|
811,200.00
|
|
|
Third Year
|
|||
|
Month
|
Rent
(%)
|
Total
Revenue (RM)
|
Sale
Forecast (RM)
|
|
Jan
|
60%
|
96,000.00
|
57,600.00
|
|
Feb
|
60%
|
96,000.00
|
57,600.00
|
|
Mar
|
90%
|
96,000.00
|
86,400.00
|
|
Apr
|
60%
|
96,000.00
|
57,600.00
|
|
May
|
80%
|
96,000.00
|
76,800.00
|
|
Jun
|
70%
|
96,000.00
|
67,200.00
|
|
Jul
|
65%
|
96,000.00
|
62,400.00
|
|
Aug
|
60%
|
96,000.00
|
57,600.00
|
|
Sep
|
95%
|
96,000.00
|
91,200.00
|
|
Oct
|
80%
|
96,000.00
|
76,800.00
|
|
Nov
|
95%
|
96,000.00
|
91,200.00
|
|
Dec
|
95%
|
96,000.00
|
91,200.00
|
|
Average =
|
76%
|
Total (RM) =
|
873,600.00
|
As
shown in Table, the forecast sale for the first year, 2015 will be lower
because of the popularity is low. In year 2016, the popularity is increased
after advertised in newspaper and social platform such as Facebook. In
addition,the occupancy of our hotel during Malaysia school holiday period such
as March, May, June, September, November and December will higher. This is because
of most of the hotel are rated it as super peak season and charge a higher rate
per night where our hotel are still remain the original price. Our company will
be operating 365 days per year to maximize the profit.
1.7 Marketing Strategy
1.7.1 Promotion
The purpose of
having promotion strategies is to create public awareness, generate and boost more sales. In order to promote the
hotel, early bird discounts will be given. The customer who booked their room 3
months before the date of check-in, they are eligible to 15% of discount on the
rental of first night.
In
addition, website will be design and available for the customer to know more
info about the hotel before they book it. Online booking also a feature of
website to convenience the customers where they do not have to call to the
hotel for booking.
In order to further boost up
the public awareness, advertisement will be advertised on the newspapers and
popular hotel booking website such as Agoda and Booking.com. In addition,
advertisement on social platform such as Facebook will also remain as one of
the marketing strategy for the project.
1.7.2 Price
When deciding on the rental of hotel, there are 3 main factors taken into
consideration which are competition oriented and demand oriented. Competition oriented is to
survey the market of similar development and decide on the price which is
competitive. Demand oriented will be deciding on the price simply by
considering the market demand and supply of the product. If there is a shortage
of the product in the market, the price will be higher and vice versa. The
selling price is decided after the careful consideration of these two factors. The rental for all three
types of room is shown below.
|
Type
of Room
|
Rental/Night
|
|
Outgoing
|
RM
80.00/bed
|
|
Conservative
|
RM 200.00
|
|
Adventure
|
RM
120.00
|
Although the selling price of the products of
this development is slightly higher than other competitors, it is justified by
the quality and concept of the product.
1.7.3 Place
Since
the official inscription of Georgetown as a UNESCO World Heritage Site in 2007,
the location of hotel is very strategic because it is nearby to the city.
Besides, the Container Hotel is located in BatuFerringhi, it is within easy
walking distance to beach front with sunset view, which is perfect for
traveller enjoying their getaways.
1.7.4 Product
The
proposed project is an eco-friendly budget hotel with 16 rooms in total which
target to travellers and backpackers in Pulau Penang. The project consists of
three types of rooms available to the customer namely Outgoing, Conservative,
and Adventure.
The
Outgoing type of room is for those on tight budget, with single beds arranged
dormitory-style. This type of room is suitable for all backpackers whether in
group or individual and there are two mixed and one female dormitory for the
customers. Each dormitory is furnished with four
sets of bunk beds with each unit of bed come with individual reading light,
international plug point and fresh towel. In
addition, lockable cupboard will be provided to each customers put their
belongings.
|
Room Amenities
|
|
|
Single Bed
|
Air Conditioning
|
|
Complementary Bottled water
|
Hot and Cold
Shower/Bath
|
|
Wireless Internet Access
|
|
Moreover,
guest can choose Conservative room which is furnishes with a comfortable double
size bed and en-suite toilet. It is ideal for both single and couple traveller
with a warm and natural interior. A functional working area is featured in this
room as well.
|
Room Amenities
|
|
|
Double Bed
|
Air Conditioning
|
|
Complementary Bottled water
|
Hot and Cold
Shower/Bath
|
|
Wireless Internet Access
|
|
The
Adventure room is another choice for single or couple travellers. The room is
furnished with a super single bed with unique room shape which design in a
cave-like container and ambiance environment. The washroom is separated but
located near to the room.
|
Room Amenities
|
|
|
Single Bed
|
Air Conditioning
|
|
Complementary Bottled water
|
Hot and Cold
Shower/Bath
|
|
Wireless Internet Access
|
|
1.7.5 People
Other
than that, we will ensure our staffs have posed a good manner to ensure the
satisfaction of the customer is maximised. In addition our staffs have a good
communication which is able to speak Mandarin, Hokkien, Cantonese, English, and
Malay to overcome the communication barrier. All of our staff will need to
attend for training courses before they are working in our hotel. Furthermore,
we are only recruiting the staff which have minimum diploma certificate in
hotel management. This is to ensure the existing customer will spread their
word and we may win referrals.
1.7.6 Joint Venture
In
order to increase our reputation, we have decide to joint venture with the
tourism agency in Malaysia such as 3J Travel & Tours Management SdnBhd and
59 Travel & Tours SdnBhd which we will provide the accommodation for their
tourist who visit to BatuFerrenghi, Penang. This is to ensure that we have a
positive cash flow and the hotel room is fully occupied.
1.8 Marketing Budget
|
No
|
Particulars
|
Fixed
Assets (RM)
|
Monthly
(RM)
|
Total
(RM)
|
|
1
|
Fixed Assets
|
|||
|
Signage
|
5,800.00
|
5,800.00
|
||
|
2
|
Working Expenses
|
|||
|
Trade Show
|
3,400.00
|
3,400.00
|
||
|
Advertising
|
2,800.00
|
2,800.00
|
||
|
Public Relations
|
1,600.00
|
1,600.00
|
||
|
Catalogue, Pamphlets,
Banner & Business Card
|
1,000.00
|
1,000.00
|
||
|
Mobile Phone
|
800.00
|
800.00
|
||
|
Total
|
5,800.00
|
9,600.00
|
15,400.00
|
0 条评论:
发表评论
订阅 博文评论 [Atom]
<< 主页